Gov. Jerry Brown on Tuesday unveiled a "sweeping pension reform
agreement" he claims will save taxpayers billions of dollars by capping
benefits and increasing the retirement age for state workers.
Brown said the agreement with state Democratic leaders will stop abuses and require state employees to pay at least half of their pension costs.
"These reforms make fundamental changes that rein in costs and help to ensure that our public retirement system is sustainable for the long term. These reforms require sacrifice from public employees and represent a significant step forward," Brown said.
Brown said that if the Legislature passes the reforms, public retirement benefits would be lower than when he took office during his first go-round as governor in 1975.
Brown said the agreement includes benefit rollbacks for public employees. It will require all current and future state employees to fund at least 50 percent of their own pensions, something Brown hopes becomes "the norm for all public workers in California," since the agreement removes state barriers that prevent local governments from increasing employee pension contributions.
Brown's plan also raises the retirement age for new state workers by two years and allows cities and counties to raise the retirement age of their employees as well.
The governor said the agreement bans abusive practices state workers have used to enhance pension payouts, such "spiking" and "air time."
Spiking gives employees big raises during their last year of employment to inflate their pensions.
Read more: http://www.courthousenews.com/2012/08/29/49752.htm
Brown said the agreement with state Democratic leaders will stop abuses and require state employees to pay at least half of their pension costs.
"These reforms make fundamental changes that rein in costs and help to ensure that our public retirement system is sustainable for the long term. These reforms require sacrifice from public employees and represent a significant step forward," Brown said.
Brown said that if the Legislature passes the reforms, public retirement benefits would be lower than when he took office during his first go-round as governor in 1975.
Brown said the agreement includes benefit rollbacks for public employees. It will require all current and future state employees to fund at least 50 percent of their own pensions, something Brown hopes becomes "the norm for all public workers in California," since the agreement removes state barriers that prevent local governments from increasing employee pension contributions.
Brown's plan also raises the retirement age for new state workers by two years and allows cities and counties to raise the retirement age of their employees as well.
The governor said the agreement bans abusive practices state workers have used to enhance pension payouts, such "spiking" and "air time."
Spiking gives employees big raises during their last year of employment to inflate their pensions.
Read more: http://www.courthousenews.com/2012/08/29/49752.htm
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